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- The global stock markets are rocketing today on news that a vaccine that would put an end to the ongoing pandemic has 90% effectiveness
- This news signals that it may only be a matter of months before things start going back to normal, which means a reduction in government spending and economic turbulence
- Naturally, this is a bad thing for safe haven assets, with todayâs news sending the price of gold nosediving
- Bitcoin has seen some downwards momentum as well, although it is mostly consolidating around the price at has been at for the past few days
- If BTC truly is a safe haven asset that trades more like gold than it does equities, then this news could strike a serious blow to its strength
Bitcoin is still trading within the mid-$15,000 region following a period of weakness throughout the past couple of days.
Following its rejection ta $16,000, bears sent its price plunging to lows of $14,400. At this point, it was able to reverse its descent and rally all the way up towards the upper-$15,000 region.
It has been consolidating ever since and may now be on track to see its volatility start ramping up as the global markets start moving based on the vaccine news.
Vaccine News Sends Stocks Flying; Strikes Blow to Gold and Bitcoin
News of Pfizerâs highly effective vaccine has moved the markets, sending stocks flying while safe haven assets trend lower.
While the benchmark stock indices all rallied multiple percentage points in their pre-market trading hours, goldâs price nosedived â seeing one of the latest single-day selloffs it has seen in quite some time.
Bitcoin has shown signs of being correlated to both stock and gold on separate occasions, making it unclear how this news could impact its price action. It has declined slightly today.
Trader: Vaccine News Possibly Bad for âStore of Valueâ Narratives
One trader hedged his Bitcoin long exposure after the news broke, noting that it could prove to be highly negative for safe haven narratives.
âShort hedged my BTC 1:1 on vaccine news. Gold dumped so hard it makes me think itâs bad for store of value narratives. Not net short just protected for spot exposure.â
Image Courtesy of SalsaTekila. Source: Assorted Charts from TradingView.
The coming few days should shine a light on whether or not Bitcoinâs independent technical strength will be enough for it to dodge the impacts of this news.
Featured image from Unsplash. Charts from TradingView.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.